Here you can find hospitality specific terms as a reference.
Ping us in case anything is missing and we will be happy to add it to the list.
Ping us in case anything is missing and we will be happy to add it to the list.
Alternative Distribution System (ADS)
The Internet and other non-GDS electronic channels of hotel distribution. Also known as IDS (Internet Distribution System)
Generally discounted rates to encourage guests to book in advance.
Adjusted Gross Operating Profit (AGOP)
Adjusted Gross Operating Profit (equal to the gross operating profit minus the hotel management base fee and any additional expenses)
Usually refers to an ‘allocation of rooms’ (e.g a conference may have an allocation of rooms at an agreed rate)
Displaying other available properties when the requested property is unavailable for sale.
A common GDS (Global Distribution System)
Average Daily Rate (ADR)
Figure derived by dividing actual daily revenue by the total number of rooms sold.
Average Length of Stay (ALOS)
Figure derived by dividing the number of room nights by the number of bookings.
Average Rate Index
Measures a hotel’s ADR performance relative to an aggregated grouping of hotels (i.e., competitive set, market or submarket). If all things are equal, a property’s ARI is expected to be 100, compared to the aggregate group of hotels.
Above The Line (generally refers to mass marketing campaigns to drive awareness)
Availability, Rates & Inventory
ARR – Average Room Rate
Total room revenues divided by the number of rooms occupied, excluding any rooms offered complimentary
Business to Business
Business to Consumer
Rates that include Bed and Breakfast
Back of House
Area of the hotel that is generally off limits to guests (e.g kitchens, offices, storage etc.)
Best Available Rate (BAR)
The lowest non-restricted rate bookable by all guests. This rate can change several times a week up to several times a day. Also called Best Flexible Rate(BFR)
Agreed upon hotel management fee earned by the hotel operator.
Business Day End
Comparing your hotel against competitors. This could include benchmarking by product/service, room rate, quality etc.
Banquet Event Order
Best Rate Guarantee (BRG)
The promise that hotels or OTAs will the best rates on their own site as compared to any other side for the same product.
Booking Pace (Pace)
A comparison by a supplier of what is on the books for a future period versus what was actually sold during the same period the previous year.
Generally refers to smaller, luxury hotels that differentiate themselves by their service and product offering. For example, a boutique hotel may have different, themed rooms etc.
Balanced Scorecard. A performance management tool for managers.
Below The Line (generally refers to niche marketing campaigns focused on return on investment)
A method to temporarily store information. Types of information cached often includes HTML pages, images, rates and inventory. Can reduce the volume of direct system queries by allowing requests to be satisfied by extracting information from the cache (speeding up processes for guests)
A two letter code used in distribution systems to identify a hotel chain. A property needs to be associated with a chain code to be listed in a GDS (Global Distribution System). HEDNA (Hotel Electronic Distribution Networking Association) administers the list of available chain codes.
The process a hotel uses to update ARI (Availability, Rates and Inventory) in various distribution channels.
Content Management System (used to update websites) or Contract Management System (keeps track of contracts and agreements)
Rates negotiated by corporates/companies with a hotel or sales team. Typically these are lower than standard consumer rates as corporates/companies can offer a high volume of annual bookings.
Customer Relationship Management. Commonly automated to include pre and post stay elements, along with loyalty programmes etc.
Central Reservations Office – the central ‘hub’ that handles bookings of behalf of a hotel (or chain).
Central Reservation System (CRS)
The application used to manage a hotel’s distribution and hotel room bookings. Typically will be used to reach guests via multiple distribution channels such as travel agencies (via GDS), online travel agencies (such as Expedia, Orbitz, Travelocity, Priceline and others), direct to the hotel website, and telephone (either via call center, direct to property or both).
Closed to Arrival (CTA)
A room inventory control function that prevents reservations from arriving on that date. Reservations can stay through the date.
Close to Departure (CTD)
A restriction by which the hotel can restrict any check outs on a specific day
Data mining involves analyzing data to discover unknown connections and patterns that are not obvious.
Demand Based Pricing
Applying revenue management principles to move rate based upon demand within the marketplace and what the market will bear.
Specific strategies or programs that attract or drive demand to the area or a specific hotel.
A connection or interface that links a hotels system and a distribution system without relying on a third party switch provider.
Analyzing business (primarily group) based upon the total value of the business versus what transient business would be displaced if the business were accepted. The group value includes all food and beverage spending, meeting room rental and any additional outlet spending minus any costs involved.
Determining when and through what channels to sell rooms based upon the cost of acquisition of the individual channel. By driving business to lower cost acquisition channels during high demand periods, hotels can maximize their profitability.
Destination Marketing Organisation. A company/group responsible for the promotion of an area (this could be regionally, nationally or town/city specific).
The ability to create packages based upon the components the customer selects.
Electronic Distribution (ED)
Encompasses all the electronic channels of distribution, which includes GDS, Online Travel Agencies and Web Booking Engines. These distribution channels can be accessed through the Internet, an intranet or through an interfaced connection.
A secured connection between two or more intranets between two companies. Commonly used by OTAs (online travel agencies) to allow hotels to maintain their rates and availability and to receive delivery of reservations.
Fair Market Share
A hotels individual percentage of the market they should reasonably expect to capture all things being equal based upon their competitive set. Calculated by dividing the number of rooms at the hotel by the total number of rooms in the competitive set (inclusive of the subject hotel).
FOH (Front of House)
Generally refers to guest facing staff within the reception area of the hotel. These may include receptionists, concierge and room porters.
Folio level data (also known as, transaction data) is the payment, reservation and guest data that is based on the payment at check-out. Many hotel technology systems use reservation data (on the books data) to manage occupancy, rates and availability and while this is good information for future availability it doesn’t represent how the hotel actually ended the day and the actual revenue generated. There are many changes that can happen between a reservation made and the actual check-out, last minute price changes etc which aren’t reflected on reservation data.
E.g… A guest reserves 3 nights but finally only stays 2 nights. Or a guest reserves at best available rates but requests an additional discount on check-out.
As an example in other industries it would be measuring a company’s health based on orders received rather than invoices issued.
FPLOS (Full Pattern Length of Stay)
A pattern indicating whether a rate is open (available) for the arrival date and length of stay.
Function-Only Business restrictions or Event-Only Business restrictions are guidelines put in place at the hotel to ensure space is available for groups within their typical booking window.
Global Distribution System (GDS)
A reservation platform started by code sharing airline partners to enable reservations for Airlines. Later on hotels, cars and cruise companies came on board. There are 4 major GDS companies. Sabre, Galileo, Amadeus and WorldSpan (Galileo and WorldSpan are owned by Travelport) offer a comprehensive travel shopping and reservation platform to travel agents worldwide. Agents use one of these systems to book airline, car, hotel and other travel arrangements for their customers. OTAs also use one or more GDS to power some or all of their content on their site.
The process of identifying a hotels location using geographic coordinates expressed in degrees of longitude and latitude.
Gross Operating Profit (Total revenue less expenses)
Gross Operation Profit Per Available Room.
Gross Operating Revenue.
Generally refers to hotels making an active effort to operate sustainably and reduce their environmental impact.
Negotiated rates (usually discounted against standard rates) for group travel. This can include guests attending conferences, meetings and tours etc.
Guest Experience Management (GEM)
Guest Experience Management (GEM) is the practice of measuring the gap between the intended customer experience and what the customer actual experiences. The aim of that analysis is to improve the customer touch points and interactions of a business. It enables hoteliers to make the appropriate changes and increase the general level of satisfaction, loyalty and engagement of their guests.
HCD - Hotel Content Database.
Content management system used to distribute static information about hotels to 3rd parties including GDS (Global Distribution Systems), OTA (Online Travel Agents), IDS (Internet Distribution Systems) and others.
Hotel Market Intelligence
Hotel Market Intelligence is the gathering, analysis and dissemination of information relevant to hotel markets. This information’s purpose is to help you make effective decisions concerning the distribution of your hotel’s room nights. Is your hotel’s pricing competitive Is your hotel performing well across channels? How are you doing head-to-head versus your nearby competitors?
Hotel Revenue Management
Hotel Revenue Management is the process of understanding, anticipating and reacting to consumer behaviour to maximize revenue. Yield Management is also referred to as Revenue Management.
Hosted Payment Collector
A system, typically hosted by the Tokenization Service, designed to collect Payment Card information without going through any Hotel System.
Hosted Payment System
The system that presents a web page where payment information is securely collected; this system also provides a place to store Hotel provided Content Templates
Hotel Electronic Distribution Networking Association. Industry organisation formed in 1991 to advance communication training, standards, procedures and technology for the sale of hotel accommodation through electronic systems.
Internet Booking Engine.
Internet Distribution System. The Internet and other non-GDS channels of hotel electronic distribution. Includes the Internet, World Wide Web, Intranets, Extranets and online services. Also known as ‘ADS’ (Alternate Distribution System)
An individual hotel that isn’t part of a chain/group.
Information Architecture (IA)
Information Architecture (IA) is the structural design of shared information environment, and it applies the theories of architecture to the digital world. It is a way of organizing information on websites, online communities and/or software in order to make the search of information practical and logical. IA can be used to develop site maps, vertical processes, wire frame diagrams or templates and so on.
L2B / L2B Ratio (Look to book)
The ratio of people who visit your website or CRS (Central Reservations System) divided by the number of reservations received.
LOS (or Length of Stay)
The duration of a guests visit. E.g 3 nights.
Process of evaluating your product/service offering against a competitor set to determine your market price and ensure competitiveness.
Business model where the hotel offers net rates so that a merchant can add their profit margin (mark up the rates) for sale to the public. Commonly used by OTAs (Online Travel Agents), wholesalers and tour operators.
A search engine where different sites are consolidated so that offerings can be compared.
Minimum Length of Stay.
A wholesale rate to allow a third party markup.
Business model where the consumer does not know which product or brand being booked before they purchase it. They know the rate, but not the product. Alternatively the consumer may not know the individual component price of a bundled package (commonly used in dynamic packaging systems)
Online Travel Agent/Agency. A 3rd party who often sells a hotels room inventory on their behalf (and is paid a commission for any bookings referred) Examples of some of the main OTA’s include Expedia, Booking.com, Hotels.com etc.
Opera Exchange Interface
The policy of providing consistency between all sales channels. Commonly associated with rate parity, but can include room type, content parity etc.
Per Person, Per Night.
Price Match Guarantee (PMG)
The promise that hotels or OTAs will offer the lowest rates or match the lowest rate available across any channel for the same product.
Property Management System (PMS)
The application used by the hotel to control onsite property activities such as check in/out, folios, guest profiles, room status, requests, etc. PMSs can have interfaces between other applications such as the hotel point-of-sale (POS) or central reservations system (CRS).
Prescriptive Analytics is the most complex and most recent type of analytics. It combines structured and unstructured data with advanced processes like “machine learning”. This newly developed technology involves advanced algorithmic processes that predict the future based on past performance (like predictive analytics), yet it goes even further by taking into consideration big data as well, when offering possible actions.
Per Room, Per Night.
The standard or default rate for a room, before any discounts (for example, advance purchase discounts) are applied.
The policy of providing consistency of rates between all sales channels.
Residential Delegate Rate (per person rate for conference room hire, refreshments, catering including overnight accommodation)
Room Revenue, Per Available Room. The gross room revenue is divided by the amount of rooms to calculate the RevPAR – a common figure used to benchmark performance (based on rates and hotel occupancy levels)
Request For Proposal. Often requested by corporate guests. E.g) They may require a hotel to provide a response to a RFP to outline negotiated rates for the following year.
Revenue Generator Index. RGI compares your hotel’s RevPar to the average RevPar in the market. It is used to determine if a hotel is gaining a fair share of revenue . When: RGI = 1 The hotel revPar is equal to the average RevPar of their comp set.
Rate Management System.
Scraping or Screen Scraping
Copying information from one website and depositing it onto another site. Care must be taken to observe copyright laws.
Hotel’s profit margin when a room is sold (less any commissions etc.)
The practice of raising or lowering prices based on demand.